Ripple SEC battle sends waves for the XRP market, sparking surges in utility. XRP shows resilience with rising volume and circulation. By Kelvin Munene Murithi 5 hours ago Updated 5 hours ago
According to a recent report, Ripple’s ongoing dispute with the Securities and Exchange Commission (SEC) is causing waves. Consequently, the XRP market has observed significant spikes in utility this month. Besides the case’s impact, XRP has experienced a 7-month high on-chain volume and a 3-month peak in circulation.
🧑💻 #XRP is seeing major utility spikes to start the month. In addition to today’s milestone highs in #onchain transaction volume (4.8B $XRP) and circulation (2.03B $XRP), the development activity for the 5th largest cap asset in #crypto is up big as well. https://t.co/AdWcrUun9n pic.twitter.com/QHQ6U8Q0J5
— Santiment (@santimentfeed) September 1, 2023
Ripple Challenges SEC’s Intentions
In July, a defining verdict came forth, partially in Ripple’s favor, regarding the classification of XRP sales. Consequently, the SEC is pushing for an appeal, particularly on Ripple’s programmatic sales. As per Judge Analisa Torres, these sales did not breach securities regulations due to a specific blind bid process.
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Moreover, Ripple’s direct sales of XRP tokens to institutional players were labeled securities, marking a semi-victory for the SEC. Ripple has, however, made its stance clear. If the SEC proceeds with the appeal, Ripple will cross-appeal against the judgment on institutional sales.
Ripple’s legal representatives argued, “The exceptional circumstances required for interlocutory appeal are absent.” Besides, they stressed that the court’s summary judgment did not align with the parameters suitable for such appeals. Additionally, they opined that the SEC’s discord stemmed from the court’s application of the Howey test to most XRP transactions.
XRP Market Reactions and Projections
Hence, as the legal tussle intensifies, market indicators for XRP offer a mixed picture. Despite hitting an intra-day peak at $0.512, XRP retraced 2.44% to settle at $0.4961. However, this minor setback hasn’t dampened the token’s momentum. Significantly, if XRP breaks the $0.512 barrier, it may establish fresh resistance marks at $0.525 and $0.540.
XRP/USD 1-day price trend
However, failing to surpass the resistance could lead XRP to lean towards the $0.480 and $0.460 support zones. Moreover, while XRP’s market capitalization dropped by 2.06% to around $26.26 billion, its 24-hour trading volume escalated by 6.63% to approximately $1.11 billion.
The ongoing SEC-Ripple courtroom drama seems to catalyze XRP’s market momentum. As the legal tussles intensify, XRP’s utility showcases signs of thriving amidst the chaos. The cryptocurrency world will be keenly observing the upcoming chapters of this legal saga and its subsequent ripples in the market.